Investing.com - Shares of European automakers rallied in midday trade on Wednesday, as signs the U.S. and China will be able to resolve their differences boosted sentiment.
The pan-European Stoxx 600 auto sector index, with its heavy exposure to China, was up around 1.1% by 6:40AM ET (11:40 GMT), extending a gain of 2.3% the day earlier.
In an interview with Reuters, U.S. President Donald Trump said talks were taking place with Beijing by phone and he would not raise tariffs on Chinese imports until he was sure about a deal.
Volkswagen (DE:VOWG_p), Daimler AG (DE:DAIGn), and BMW AG (DE:BMWG) were all up by around 1.5% in Frankfurt, while Porsche SE (DE:PSHG_p) climbed 2.2%.
French automakers Peugeot SA (PA:PEUP) and Renault (PA:RENA) were also higher, gaining 3.1% and 1.7% respectively.
Elsewhere, shares of Fiat (MI:FCHA) rose around 1.4% in Milan.
Europe's auto sector has dropped almost 26% so far this year amid worries that an escalating trade war between the world's two biggest economies could hit global growth and reduce demand for cars.
-- Reuters contributed to this report